Skip to main content

tv   Bloomberg Markets The Trump Economy  Bloomberg  July 11, 2017 1:00pm-2:00pm EDT

1:00 pm
david lifton in for david gura today. welcome to "bloomberg markets, the trump economy." email bombshell. the russian government was --ing to help donald trump a gmail sent to the president's son in the middle of the campaign. the markets immediately reacted to the news. tough questions, president trump 's nominee to head the fbi will face lawmakers tomorrow with the russian disclosures now front and center. you will speak with a former fbi assistant director about what the fbi needs right now. meanwhile, back at the ranch, what will the latest russian disclosures mean for congress's plans for dealing with health care and tax reform? ♪ our top story at this hour, donald trump junior and the questions surrounding a meeting he had with a russian lawyer during the presidential campaign.
1:01 pm
hisp junior today used twitter account to reveal a series of email exchanges with a british tabloid journalist. they show he was promised damaging information about hillary clinton at the meeting and the information was said to come from the russian crown prosecutor as part of the government's quote, support for mr. trump. joining us from capitol hill is bloomberg's chief washington correspondent, kevin cirilli. megan murphy, and also here in new york is bloomberg's executive editor of global, legal, and financial regulation and enforcement. let's start in washington, where the bombshell broke loose. what is the reaction down there so far? incendiary. that's how house minority leader nancy pelosi put it, and a statement. senator john cornyn, a republican from texas, also on the senate intelligence committee, saying donald trump junior now should testify before that committee in order to get more answers from this long shell of a report. i spoke with a source close to
1:02 pm
the president's son who said they felt they wanted to get out these emails all in one time in order to just get ahead of the story. but there's no question that now there are intensifying questions surrounding the investigations, just one day ahead of the president's nominee to testify for the fbi, to testify before the senate judiciary committee tomorrow. you will certainly face questions, not just from democrats about how he will continue this investigation, but also from republicans. david: getting all out there is exactly the first thing you do, but they haven't done that. it's ridiculous. the only release the emails because "the new york times" is about to release them themselves straight let's break this down, what do we know today that we didn't know yesterday? why is it we are describing them now as the bombshell, the game changer? we knew today donald trump junior knew this information was
1:03 pm
coming to or was said in the email that was coming from the russian government, the crown prosecutor of russia, that information was there. we know that when jared kushner was also involved in email, he also -- there are people in a wider circle that that was aware that that was what we were seeing discussed. was there an emphasis quid pro quo? that we don't know. what's important to focus on here is it kind of leaves more explanation and more of what i'm sure we can talk about is investigation in terms of what the president knew. he was so firm and so forceful and wanting james comey to drop this probe. kid now emerges that his son and his son-in-law were enmeshed, really involved in the exchanges about whether or not this information was of value about hillary clinton. that is very important and may go behind to see some of the president's reasoning, some of the president's forcefulness about why he wanted this to be dropped so extensively. that is crucial.
1:04 pm
basically, iaying, was not even on the ticket at this point. this is a vice president who has spent months saying there was no collusion, there was no interchange between the two. that is also significant. we shall see if other republican start to run away into the bushes. particularly on this subject as well. the reason this is such a bombshell and game changer is that these emails now put into stark relief what was suspected, that his own family was in direct communication with people who promised information not from other sources, but from the russian government. david: you have given us some of the reaction off of capitol hill down there. what is the white house saying? what is their strategy for dealing with this? >> they haven't said much straight if you look at the president has twitter account, he's yet to officially wiegh in
1:05 pm
on this. i think another point to raise this russians, lawyer, and her previous cases and her previous representation, what type of company she represented, what type of companies that tied to the russians she represented. i think i will be interesting to find out. we should also note that before i came on air we were with a gaggle with the democrat for maryland who said quote, unquote, what happened with donald trump junior underscores how russia was operating, end quote, making the case the senate bill passed on increasing russia sanctions should be taken up in the house of representatives, where it's in limbo. i caught up earlier with senator joe manchin, democrat from west virginia about whether or not there was anything odd about this meeting. comprehensible that anyone would go to a meeting such as that. for paul manafort, the campaign
1:06 pm
manager, to let that happen, that is an inadequate campaign manager that can let that happen, i can assure you. >> i spoke with a senior aide for a prominent republican senators here who said, well all this is going on, health-care legislation has greatly diminished. david: i want to come back to you. before we get too excited. what about the law? what law would be broken or could be broken? >> there's a lot of talk about collusion. let's be clear, what were talking about is a conspiracy to undermine the election or said the campaign. to show that, you would have to show someone took information or intended to take information or money from a foreign government. and the emails are so alarming because they do layout specifically that a russian government official was supposedly behind this, so they knew that going in. in him else themselves
1:07 pm
they do not indicate information was passed. it was promised to help -- there's no indication these in males would say -- these emails would say -- >> does a lot of dispute about what was actually said in this meeting and i'm sure we will hear more about it as time goes by. know the lawyer, yes indeed, she had a clear issue. she was trying to reverse the act, crucial to improving u.s.-russia relations straight we know what her admission was. the discussion here, even if it wasn't a bombshell about the clinton campaign, even if she was shopping information she thought to would be negative to it, that is clearly the intent presented to donald trump junior and anyone else you might have seen these emails. david: some people have said, markets are overall this. they are passed russia. when this news broke a short time ago, you saw the reaction in the markets immediately. >> it is something we talk about all the time. not pricing this in. markets will get
1:08 pm
nervous about, we can talk about information, whether it's collusion, whether or not the information was exchanged. the issue here is the carelessness involved in putting these kinds of exchanges in email, the recklessness involved, the real growing alarm about what actually this administration is about and what kind of information. that will make the market nervous going forward. kevin cirilli mentioned tax reform. good luck. david: is it just be what were they thinking aspect of this. what were they thinking? bloomberg's megan murphy, thank you all very much for being here. let's get a check on where markets stand right now. bloomberg's julie hyman is here with the latest. julie: i want to talk about the market reaction we have seen. it was immediately the emails came out but the market has bounced act, at least stocks bounced back to some extent at this point. it's difficult to ascertain whether there is real concern among investors about what this means, fundamental concerns, or
1:09 pm
a knee-jerk reaction to the emails coming out, without really much extrapolation about what happens next. you could also question whether indeed investors are really pricing in a real chance of health care or tax reform at this point, whether the rally has happened without those things being brought upon at this time. you see all three major averages little change at this point, s&p consider the worst of the three. financials are what's driving this index down the most great s&p financial index took a leg lower when these emails came out and sort of has bounced near the lows here, down 7/10 0of 1%. if you look at this sort of traditional flight to safety, safe haven so called, we're seeing a mixed picture there. the vix up 2%. gold little changed. we did see the dollarfold a little bit versus the yen. some buying in the treasury market. all of these moves at this point are relatively muted.
1:10 pm
the backdrop is that investors are feeling a little more cautious. why the ways we can look at this is look at the long interest in the u.s. dollar. dollar position, so green here. net long, red net short, and we've seen that flip over in the past couple of weeks here. folks getting less of bullish on the u.s. dollar. finally, quick check on oil as well. there we are seeing a more decisive move in today's session, up nearly 2%, above $45 a barrel. some traders attributing this move to some european stockpile data that came out and showed a drop in stock files, -- stockpi les. and seeing some strength here in the energy stocks indeed. that is one of the few sectors in the green at this point in the session. david? david: thanks so much, julie. coming up, in the wake of disclosures about the president's son was offered
1:11 pm
helped by the russians as part of the campaign, we will talk to the man charged with trying to defend the federal government cyberattacks. live from new york and from washington, this is bloomberg. ♪
1:12 pm
1:13 pm
david: i'm david westin. the dilemma surrounding donald trump junior's meeting with a russian lawyer comes against a backdrop of russian attempt to interfere in the 2016 presidential election, at least according to the unanimous view of the u.s. intelligence agencies. to learn about russia's strategy and the potential threat it poses to the united states, we turn to a retired brigadier
1:14 pm
general. he was the nation's first ever chief information officer appointed by president obama. he's just been named president of the newly reformed federal division of the cybersecurity company. he joins us today from washington. general, thank you for being with us. without going into details about what exactly is going on with donald trump junior, tell us about more broadly what you know and can tell us about the threat to the united states from cyberattacks, whether they are state actors or nonstate actors. the opportunity to share some of the discussion on cybersecurity which i view as a risk management issue. as we take a look at the risk exposure across the country, our critical infrastructure, our federal government, even our homes are exposed to cyber risks, as we have an increasingly interconnected world with computers, handheld devices, our information spread throughout the internet. it's up to us to make sure that we better manage our risk. david: what does that entail? how do we better manage our
1:15 pm
risk? of things come to mind. we need to adopt the risk management strategy and attitude in the home as well as in the office. as we take a look at folks in information, folks try to seek competitive advantage by having greater information assets than others. we want to make sure we protect our own personal information, and if the custodians of our information are doing a good job in making sure information is well protected. as we take a look at our federal government, we want our government to be open and transparent, while serving our privacy, civil rights and civil liberties. -- we wantnt folks to make sure that they don't get access to the information that we want to have secure. david: one of the suggestions that came out of the president after his meetings in the g20 is maybe we should work with the russians, maybe put together a joint task force. there was a fair amount of
1:16 pm
ridicule of that suggestion. was it such a bad idea? we have relationships with various rivals around the world to deal with things like nuclear weapons. does it make sense to work with them on cybersecurity? gregory: i believe america is a country that is always trying to tear down walls and try to make sure that we have effective dialogue with countries around the world. my time in homeland security, i'm working in the national cyber security communications integration center. we have relationships with the united states readiness team with other countries around the world where we would exchange information about cyber threats. i think it's important for us to make sure that as a cyber neighborhood watch, we are in fact sharing best practices, information about threats, and helping each other. one believe it is important to maintain dialogue with others in the cyber realm. david: why does it always seemed to be russia? that's a bit of an exaggeration.
1:17 pm
why is it so often it seems to come from russia? gregory: frankly, that's a great question. russia i think is probably the most potent of the potential adversaries we have in the cyber sphere. but there are other folks increasingly capable. the chinese, the north koreans, all of the folks that we view as potential adversaries have made significant investments in their cyber capabilities. let's not forget the united states has the greatest risk exposure to cyber threats. you sogeneral, thank much. that is the retired brigadier general. now, let's check in on the bloomberg first word news. for that we turn to mark crumpton. mark: iowa senator chuck grassley says he's quote, very pessimistic his fellow republican senators can settle their differences and come together to pass the health care bill. a vote is scheduled for next week. presley protects republicans would lose their senate majority, if they break their
1:18 pm
promise to repeal and replace obamacare. 's voter fraudp advisory committee is suspending its controversial request for state voter information. instead, he will wait for a federal judge to rule on whether the order violates privacy laws. 44 states have refused to have much of the information the committee wanted. syria's ambassador to the united nations is appealing to quote, genuine partners to help end this country's devastating six year civil war, insisting that such international cooperation must involve president bashar al-assad's government. >> we need the political commitment of everybody to work it out. you cannot put an end to the war only by yourself. you need to have genuine partners to combat terrorism.
1:19 pm
terrorism, it shouldn't only be exclusively a syrian issue. it's an international issue. mark: the u.n. envoy told reporters on monday he doesn't expect any breakthroughs about what he calls incremental progress in the talks which are set to run through friday. a surprising new study finds 41% u.s. havein the experienced some form of online harassment, while much of it is considered harmless, 18% say they were subjected to severe harassment, including physical threats and stocking. 14% of those responded to the pew research center's survey saying they were harassed strictly for their political views. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: still ahead, a closer look at the met president trump
1:20 pm
has nominated to supervise wall street banks. life from new york, this is bloomberg. ♪
1:21 pm
1:22 pm
david: this is "bloomberg markets, the trump economy." late yesterday we got word that president trump would indeed nominate randall quarles for the position of federal reserve of vice-chairman of supervision, where he will oversee banking regulation. if confirmed, he would also become a member of the board of governors and sit on the fomc. when we spoke with quarles earlier on bloomberg tv he talked about his preference for a more rules-based approach to monetary policy. issue is, if that decision going to be a discretionary decision based on the individual assessments of people who are at the federal reserve at a particular moment
1:23 pm
or is it going to be -- is the federal reserve us monetary policy going to be more rules-based, is the federal reserve job going to be we will determine what the rule is, and the markets and then assessed with that rule is and from time to time we may change the rule, but while that rule is in effect, there will be certainty in the markets as to what the consequences of it will be. whether it's one man's decision -- it is nonetheless a decision, and the market uncertainty is driven by the fact that that decision will not be notable. david: for more on the significance of that announcement we turn to bloomberg businessweek's economics editor peter coy. is going to have a say in monetary policy and starting their, cap janet yellen, the current chair. rules versus discretion was going to come up anyway. how much did this change the balance? janet yellen is sympathetic to the idea of wanting to be predictable, funny to have
1:24 pm
standard practices. she doesn't like the idea of a rule. she's afraid that would tie the hands of the fed. things can come up that are unexpected, and the governors have -- everyone on the fomc, they have to bring all of their thinking, all of their judgment, all their expertise to each decision. it seems like a simple thing to do monetary policy, twist the knob left or right. decades of immersion in markets. david: we see that right now as we speak. we should be having more wage presure. -- pressure. if you're going to flip that switch, it might be backing off their hiking. >> this is a perfect example of a time when the rule -- depending on how the rule is said, possibly in the wrong direction. you have to be able to know how to weigh different criteria.
1:25 pm
some you might give more weight to it. chair in charge of banking regulations, a position that has not been filled before. what do we expect? how fast can he turned on the regulation? >> he has a fair amount of discretion in the implementation . particularly the stress tests, which the big banks dislike. they dislike them for two reasons. each year the stress tests are little different. the fed likes them because they want to keep the banks on their toes straight they don't want them to have an easy target they can gain, because they know exactly where the holes are. is likely toes standardize the stress test in a way that will make the more predicable for the banks. david: the banks have said there's a fine line between being predictable and being arbitrary. they sometimes felt it has been arbitrary. >> that has been their concern. i can very well imagine that
1:26 pm
with quarles replacing tarullo, the banks probably breathing a sigh of relief. i think it's pretty much a done deal. it will take a while, but it will happen. ofid: thanks to peter coy bloomberg businessweek. you do want to miss our coverage of janet yellen's testimony on capitol hill tomorrow at 10:00 a.m. eastern time -- do not want to miss our coverage of janet yellen's testimony on capitol hill tomorrow at 10:00 a.m. eastern time. life from new york and from washington, this is bloomberg. ♪
1:27 pm
1:28 pm
1:29 pm
david: this is "bloomberg markets: the trump economy ."
1:30 pm
let's begin with the first word news with mark crumpton. donald trump, jr.'s response to the report of him receiving damaging information on hillary clinton was "i love it." this according to emailed the new york times says it obtained. the emails were said to him prior to the meeting with, connected lawyer. meantime, the president is being sued for blocking users critical of him on twitter. the lawsuit filed in new york says the president's account is a public forum and is against the first amendment to block people from seeing it. the suit was brought by the first amendment institute, and affiliated with columbia university. secretary of state rex tillerson is in qatar today, the second stop in his middle east trip, to mediate the dispute between the
1:31 pm
nation and for other countries. ir met with the qatar am siding and anti-terror deal. >> both countries are accountable to their commitments. together the united states and to track downmore funding sources, collaborate and share information, and will do more to keep the region and our homeland safe. secretary tillerson's next top is saudi arabia, the main player in the cutter dispute. andon's iconic black company is rebranding itself for the future. hundreds will be appearing on the roads of amsterdam next year powered by batteries instead of diesel fuel. it marks a new phase for the london taxi company which is hoping to expand its reach beyond the u.k. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: for more on our top story
1:32 pm
now, moments ago, republican senator lindsey graham of south carolina reacted to the donald trump, jr. news. in a campaignu're and you get an offer from a foreign government to help your campaign, the answer is no. i don't know with mr. trump, jr.'s version of the facts. he definitely needs to testify. the email is disturbing. now isjoining me representative dave brat of virginia, member of the freedom caucus, which has come up with three options for raising the by $1.5 trillion. welcome to the program. thanks for being here. i want to talk about these three options, but before that, i want to ask you about the donald trump, jr. news. did you have any initial reaction to what you have heard so far? on sinceas been going last august now, the obama first blast into this russian peace.
1:33 pm
we had a full year, none of the prior stories have stock, so they come up in the morning, they catch us flat-footed, we don't have a fax to begin to process these in an integrated way. i just like to wait. we all have meetings all day with people from all over the world. for the press to kind of expect us to have philosophical insights on every 15-minute segment of our life is too much. david: well if we don't, we certainly hope that you will. let's get back to the substance of the debt ceiling. that is something the freedom caucus has taken a position on. you have three alternatives on ways to handle this, all of them some would find pretty draconian. pretty severe about what would be involved. take us through them. >> i disagree with the premise. , asou start with reality opposed to the tweet stuff, the
1:34 pm
reality is this country is facing $100 trillion in unfunded liabilities and 20 trillion in debt and 0.7 economic growth last quarter. conan -- draconian. trivial with respect to those serious threats to our fiscal and financial stability going forward. say you want to restructure the debt so that wall street does not get jittery. wall street appears to be getting jittery based on tweets. we want to restructure so that when things come down to the nitty-gritty, like they always , wall street does not get panicked, the treasuries are safe, and we pay back the promises on our debt. number two, we want to save some money. i just mention we are 100 trillion light. we would like to save 400 billion dollars, that is less than half a trillion. with respect, that is not even in the ballpark of making a
1:35 pm
significant impact on the major issues of our day. finally, we all ran on obamacare appeal. we want to tie the debt ceiling increase to something that we promised and voted on 50 times, again, not drug akoni and -- draconian. if people look up the word for appeal in webster's, i think that will be informative. david: i don't think there's any informed american that we disagree that we are in trouble on the debt, but let's talk about really doing something about it. just expecting some discretionary money from some agencies is not going to get that $100 trillion deficit down. what you need to do, i think, is do with social security and medicare, which is where a lot of that debt is coming from. why aren't you going after that instead of nibbling around the edges of it? we are. i'm on the budget committee and our chairman has done a great job.
1:36 pm
she has gone into mandatory spending. that is 75% of the budget. if people don't know the basic math, in 20 years, all federal revenues coming into the coffers will only go to those entitlement mandatory spending programs. there will not be any money left in 20 years for education, transportation, the military, if we don't get our house in order. toare trying to go after 200 that is a dropd in the bucket. that is what we're are doing in the house freedom caucus. the question for the american people is where is the rest of the conference? and they want to go bigger, we are leading on the issue you are interested in and everybody else , there does not seem to be much action. david: there are not, and my hat is off to you for at least focusing on this. whether it is the right or wrong way, you are focusing on it. you just want to a presidential election and idle rumor either
1:37 pm
candidate taking on the issue. nobody talks to the american people about this. it is not just the democrats, we are not getting it from your side. >> you are right. it is tough to be the party that says eat your spinach when the house is burning down. our party, paul ryan has been good on this for 20 years. he is the tech no expert on these issues. we are finally started to make some inroads. every time you find some savings people say you are cutting people, they're all of the disastrous consequences, when in effect, we are reducing the rate of growth. nothing is getting cut, that i know of. if you can name something getting cut in the swap, i will give you a free hamburger. david: the problem is we have all those pesky constituents out there that don't want to lose anything. even as you are speaking, mitch mcconnell, the senate majority leader, has said that he wants to delay the start of the august recess.
1:38 pm
i would assume that would apply to the senate and not the house. >> good. that would be great news. they have the 12-member subcommittee working on health care. if they can reach consensus, and that cruz amendment is just fine. you can keep what you have, or you can choose a less expensive product if that is what you want . it is a win-win. most people are in favor of choices. it seems like a winner. i hope we go down that path. david: we at bloomberg have the terminal. speaking,u have been senate gop leadership has agreed to put off the recess for at least two weeks. you have more time to work with to get some stuff done. >> wow. david: how hopeful are you that real progress can be done? the best incentive in our life is that recess. ,f you keep us from going home
1:39 pm
we get one week with our family and then three weeks with constituents, if you threaten that, we will, with a work product you soon. david: let me come back to the debt ceiling. you have these three alternatives, maybe they were, maybe they don't. to what extent are you concerned, is the freedom caucus really digs in its heels, your leadership will say i need to go across the aisle and get some democrat votes, and actually go softer instead of harder. that is a possibility, has happened in the past. people back home don't like the process. speaker wright has promised regular order, so that precludes us from going in that direction. anytime we did that, we busted the budget, right? we don't want a budget that is higher than obama levels. when you have the republican house, senate, white house, you cannot end of blowing the budget worse than the obama regime and cling to be stewards of the country's economy, etc.
1:40 pm
there is always that tendency. of here in the swap, it is run by money. i just watched the last episode of "house of cards" but anyone that wants a little insight into the swap, take a peek at that last episode. it is a doozy. congressman,y, have you been talking with speaker ryan, other members of your leadership about your alternatives? do you have any indication of whether they will go with one of the three options? have beenpast they open to all of them and they're open to aspects of each one of those three. so you know, my personal issues are much broader. these are just official house freedom caucus positions. if you -- the senate health care bill does not go through, we are shy $1 trillion to get corporate tax rates down. if the border of adjustable piece goes away, that is another trillion we are short.
1:41 pm
dollars,o trillion 2000 billion dollars. the last thing i want, and i'm trying to be constructive here, is not to come up with the one thing that we have to have at the end of the summer, full tax reform, to get the economy moving. if we get that done, it's a home run. if we don't, we fail, and the folks back at home will not be happy. david: a billion here, a billion there. pretty soon you are talking about real money. it's been a pleasure. thank you so much. dave brat from virginia. coming up, all eyes on president trump's tax plans. the white house legislative affairs chief mark swartz sees the tech proposal out by the end of the month, but not all officials are on the same page. more details coming up next. this is bloomberg. ♪
1:42 pm
1:43 pm
1:44 pm
david: this is "bloomberg markets: the trump economy." leader hasp announced they will cancel the first two weeks of their august recess. we are waiting for a press conference from the senate republicans on the hill. we will bring that to you when it comes. in the meantime, joining us now is sahil kapur. we just talked with congressman brad. what is going on in their? il: canceling or delaying the august recess is an unusual thing. dayh mcconnell announce a will delay the start of the august recess by two weeks. they will be able to stick around and work on things. after thementioned
1:45 pm
senate finishes its work on health care, they can turn to other things like national defense authorization act, which funds the pentagon, deciding how to do so. and to move on to a series of nominations from president trump that mcconnell says democrats have been obstructing. things on the agenda. of course, they have other things like pass a budget resolution, raise a debt in it, keep the government-funded. not sure how much they can do before the august recess but this is a real signal, a significant response to the pressure he was feeling, facing from members of his own party saying we have not gotten nearly enough done to go home to our constituents. thed: always great to go to horses mouth. i want to read exactly what mitch mcconnell said. to provide more time on important action on legislative items and process nominees stalled by a lack of collaboration from our friends across the aisle the senate will delay the start of the august
1:46 pm
recess until the third week of august." it,l you said it and i read i have not focused on the confirmation issue as well, i was focused more on health care and tax reform. do you have any sense from your reporting what is driving this? is it fundamentally health care, tax reform, nomination confirmation? it's a combination of everything. they are very behind on budget deadlines, setting a budget taxlution for spending and levels in fiscal 2018, the vehicle that we use for any tax cuts or reforms. they have not settled on the parameters for that. they need to fund the government one way or another, either with a new series of appropriation bills, or with a continuing existingn that keeps spending levels in place while they figure it out. they have to do that by september 30. they had to extend the children's health insurance program and the flood insurance by the 30th. then the debt ceiling soon after.
1:47 pm
none of these have gotten off the ground. based on that and the fact that they have not delivered on the two things they wanted to come health care and taxes, it difficult for republicans to go home and look at their constituents in the eye and say we have accomplished something. david: my explained with any conflict organization, whether government or private sector, if everything is your priority, nothing is. is there no sense of priority coming out of the white house? sahil: coming out of congressional leadership. of the white house seem to be elsewhere, the russia investigation, battling back, the president has an ongoing feud with certain news outlets. that takes up at least a lot of his public statements and morning tweets. yes, from congressional republicans, absolutely the priority is health care. much, sahil you so kapur. let's get a check on some notable movers from julie hyman. at some'm looking
1:48 pm
names, consumer related to michael coors is the worst performer in the s&p 500. initiating coverage of the stock with analysts. she actually lights coach, initiating a buy rating, but that is not helping the shares. she thinks there is downside risk to wall street's estimates for fiscal 2018 and 2019. she says there has been a slow infusion of innovation, changes to the merchandising and promotional strategy. all of that is negative for michael coors. coach better,s shares are still down today. also within consumer, looking at a, the cosmetics and beauty chain that has been an a performer. today it is down 5%, yesterday a story in the wall street journal
1:49 pm
that many department stores have been discounting their high-end cosmetics and effort to compete with chains like ulta and sapporo. shares fell yesterday but by less than today. declines are accelerating. oppenheimer came out today and said the weakness is a buying opportunity. however, it's not helping the shares at the moment. finally, chipotle shares rounding out our consumer names. down 2.2%. we have an analyst call as possible. oppenheimer analyst cautious on the shares, even with them in a bear market. he says you would need to see more changes at the chain and cds material risk to the streets estimate on this one as well. david: thank you. coming up, the head of the confirmation hearing tomorrow on president trump's nominee for fbi director, christopher wray, we heard from a former fbi assistant director. we will ask whether he thinks wray can stand up to the white
1:50 pm
house when a job requires, particularly in light of what happened to the former director. this is bloomberg. ♪
1:51 pm
1:52 pm
david: "bloomberg markets: the trump economy." i'm david westin. mr. hoskins now has the legal defense fund. welcome back to bloomberg. good to have you here. what is the big question -- one of the big questions in the minds of senators when they talk to mr. wray? fbi personnel, can a new director be as independent as he needs to be given the fact that jim comey lost his job over apparently an
1:53 pm
attempt to influence him? .on: time will tell these are very challenging times for the fbi, challenging times in our government. tomorrow, we get a sense of whether this congressional committee feels like they can trust what comes out of christopher wray's mouth. when he would like you provide us tomorrow our assurances about how he would view government , not only from the senate judiciary committee, but other committees on capitol hill , how he sees the relationship between himself and the attorney general, how he sees the relationship tween himself and the president of the united states. i would certainly expect to hear ways, relivet, in the last few months, where mr. wray's asked specific questions about how he would respond if given a similar set of circumstances at the white house
1:54 pm
that jim comey faced. david: would you similarly expect him to say what communications he has had with the president himself on that question? or: i think we will see one more of the senators come out of the box and ask him what are his perceived marching orders, was he asked to take any sort of loyalty oath to the president? and examine those parameters with respect to exactly what his conversations have been with the president and with the president's chief advisers. has he been given any specific marching orders other than go forth and independently and vigorously represent the constitution and the people of the united states? this question becomes particularly pointed to get a as we had you disclosures about communications leading up to the meeting with donald trump, jr. with this russian lawyer. and whether they really believe this was at the instance of the
1:55 pm
russian government. in the normal course, this would be investigated by the fbi. toit now up to mueller investigate, does this fall in the fbi purview? ron: my understanding of the charter bob mueller as the special counsel, i think this will all fall within the ambit of that special counsel. it relates to russia, potentially relates to russian influence, conversations about russian influence. i would think this is pulled in by bob mueller. bobfbi will certainly feed mueller a lot of personnel and infrastructure, resources to get his job done. congressional committees are doing some of that work themselves. i just do not see why the fbi would want to replicate all that is within bob mueller's scope independently of bob mueller. it will create additional confusion. david: how closely he will your colleagues at the fbi be watching the hearings? ron: mary.
1:56 pm
there is a sense within the fbi the organization got put -- regardless of who you blame -- into the middle of politics in america. that is not where the men and women of the fbi want to be. they want to do their work, keep america safe from terrorists, go after hard incredible's, but not be -- criminals, but not be in politics. david: that is the former fbi assistant director ron hosko. joins us, tom steyer at 2:30 this afternoon. we will ask about the future of energy policy and the attentional run for governor. and you don't want to miss our bloomberg tv . you can always watch our segments there. this is bloomberg. ♪ >> it is 2:00 p.m. in new york,
1:57 pm
1:58 pm
1:59 pm
i am scarlet fu. julia: welcome to bloomberg markets. ♪
2:00 pm
>> we are live and bloomberg world headquarters over the next hour. here are the top stories we are covering. we begin with all it takes, the mills heard around the nation. a donald trump a junior releasing correspondences with a -- whether the trump campaign colluded with a russian officials. enough tod but still remind that the market hasn't gone completely deaf to politics. we will discuss this with dan arbess. why the decline in revenue at the five biggest firms is showing up at the dating apps and golf courses. julia? julia:


info Stream Only

Uploaded by TV Archive on